If you earn $100 and the government takes 33% (Fed, state, local), you have $67 left.
That $67 is for you.
But, $67 isn't enough because as you spend that $67, let's say $10 of that $67 is more taxes and fees for things you need.
So, $57 is directly for you.
However, can't live with that. Pull out the credit card for $200 more.
Out of that $200, there will be taxes and fees, so borrowing isn't 100% for the recipient.
It sucks.
Now, govt taxation creates an account to spend. But all that money isn't directly going to recipients. There will be costs to distribute. So all that money taken away is reduced before coming back.
The govt doesn't just return a portion of what they took. They're borrowing too, and in much larger amounts.
So the individual has less after earning. Spending causes more attrition. The govt gives part back, but loses along the way. The govt borrows and never pays it back.
If individuals don't pay their debts through using credit, it's downhill fast. The govt isn't going downhill as fast, but it's goimg downhill nonetheless.
The crash at the bottom will hurt.
Poor people make less than $500k per year.
There, the US now has more poor people in the country compared to all of Europe.
Set the 'poor level' and you control the narrative.
Need to be paid a living wage? Sure, let's make it $500k per year.
People making $20k per year will look at $50k people as being rich.
It's only meaningless when it affects your narrative.